After we sign the project contract, we start doing the job. While project is in progress, we need to forecast final cost of the project.

DEVELOPMENT OF FEASIBLE ALTERNATIVES

In order to be able to forecast the final cost, there are some factors to be considered, i.e. Plan value, Earn Value, actual cost, Cost performance Index, and Schedule Performance Index. We will develop final forecast cost by considering above variable.

Based on the status above that project SPI 0,84 < 1,0, the project is delay and CPI 0,79<1 means the project is tend to overrun. Based equation 2, forecast final cost will be overrun 44.8% and based on equation 1, forecast final cost will be overrun 27,87%.

Pak Paul,
In this excercise, it’s not SPI alone to be considered to predict EAC but also the CPI.
In the equation 1. You can see that EAC is a function of AC, BAC, EV, 80% of CPI, and 20% of SPI. While in the Equation2, IEAC is a function of AC, BAC, EV, and “CPI x SPI”. So both equation is considering SPI & CPI to predict the EAC.
CMIIW.